A higher price increases producer surplus. True False

If a price reduction leases to an increase in total revenue demand is?

Price rationing will happen whenever there is excess supply in a market. Select one: a. False b. True

Refer to the graph provided. A price floor set at $5 will result in * Price $5 4 3 D 100 150 200 Quantity a shortage of 100 units. a surplus of 100 units. a shortage of 200 units. a surplus of 200 units. a surplus of 50 units.

Homework 2 Q1) Assume a market of a specific good. The demand and supply equation is as shown below: Pp = 70 – 3QD Ps = 5 + 2Qs Find the equilibrium price 2. Find the equilibrium quantity 3. Find the demand price elasticities at the equilibrium 1. 4. Find the supply price elasticities at the equilibrium 5. Find the Consumer Surplus 6. Find the Producer Surplus

Price $10 8 6 4 Quantity Supplied perfectly elastic. inelastic. perfectly inelastic. 10 9 8 7 6 2 Refer to the table. Over the $6-$4 price range, supply is elastic.

The supply curve for product X is given by QXS = -520 + 20PX. a. Find the inverse supply curve. P= Q h. How much surplus de proc

What would happen when price ceiling is below the market price A) supply surplus B) demand shortage C) market equilibrium D) none is correct

Suppose that the supply and demand equations for a certain product are given by: p=D(q) =70-0.2x p= S(q) = 13+0.004.x² Graph the two functions on the same axes. Label some of the values on each axis.

Figure 3-2 Refer to Figure 3-2. A decrease in the price of substitutes in production would be represented by a movement from A to B. B to A. S1 to S2. S2 to S1.